1 april 16, 2007 sony pictures entertainment analyst meeting
TRANSCRIPT
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April 16, 2007
SONY PICTURES ENTERTAINMENT
Analyst Meeting
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Privileged and Confidential
MICHAEL LYNTONCHAIRMAN & CEO
SONY PICTURES ENTERTAINMENT
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• We believe in the power of “Sony
United”
• Increasingly international in
scope
• Leader in using technology to make
and deliver entertainment to our
audiences
• Emphasis on financial discipline
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• 42 titles released on Blu-ray in North America
• Blu-ray outselling HD-DVD discs by 2-to-1
• SPHE has sold over 300,000 discs
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• Talladega Nights bundled with the first 500,000
PlayStation 3’s sold in the U.S.
• Casino Royale offered with the release of
PlayStation 3 in Europe
• Casino Royale became the first high-definition disc
to ship 100,000 units
• Blu-ray has support of 7 out of 8 major studios
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Blu-rayHD DVD
Blu-ray vs. HD-DVD
70%
29%
Year-to-date 2007,
Blu-ray sales have outperformed HD-DVD by 132%
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• Thirteen #1 movies in 2006
• SPE was #1 in U.S. box-office receipts
• Broke all-time box-office record with $1.7
billion
• $3.3 billion in worldwide box-office
receipts
• SPE was #1 during the 2002-2006 time
period
o SPE was the only studio to break the
$6 billion mark during that time
• SPE has been #1 in three of the past five
years
• SPE has more #1 openings than any other
studio between 2002 and today
MotionPictures
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• 2006 was biggest year for SPRI
• 2006 total gross $1.63 billion
• The Da Vinci Code set all-time box-office
record with $154.7 million in its opening
weekend
• Casino Royale set a new record for the
James Bond franchise
o Biggest Bond film ever in the
international marketplace with $426.4
million through March 2007
• The Da Vinci Code and Casino Royale led
the international marketplace for 4
consecutive weekends
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Challenges&
Opportunites
• The business is increasingly
competitive
• Consumers accessing a wider
variety of entertainment in more
ways than ever before
• We must keep ahead of changes in
technology and society
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Financial DisciplineOur goal at SPE is to be creative
and financially disciplined at the same time
SPE has been profitable for ten straight years
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• Make fewer “first dollar gross” talent
deals
• Reduce the number and cost of
“producer lot” deals
• Ensure physical production is on
track and on budget
• Implement strategic and disciplined
marketing strategies
• Diverse film slate
• Seek out tax and other government
sponsored incentives
• Continue to think “globally”
Financial Discipline
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Sony Pictures Overall Revenue
$6.1 billion in Calendar Year 2005
Calendar Year 2006$ 7.8 billion
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